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WAPA Releases Summary of Small Power Producer's Proposals

Dec. 23, 2005 – The Virgin Islands Water and Power Authority's technical team is in the process of analyzing the bids opened on Nov. 30 from small power producers proposing to supply energy and water to the utility. Proposals were submitted from St. Croix Renaissance LLLP, a St. Croix based company, Innoventor Technologies LLC of Missouri, and Energy International of Puerto Rico. A fourth proposal received from Florida-based WET Systems LLC was disqualified because the company did not submit the required $10,000 application fee, a release from the authority said. . WET Systems proposed to produce water and energy by converting solid waste into fuel cubes to fire steam generators. All copies of their proposal have been returned to the company.
The authority is now in the process of negotiating with the three eligible bidders who are required to set up operations on St. Croix. . Face-to-face discussions with principals of each company are set for next week, the release said. St. Croix Renaissance proposes to sell WAPA water and electrical energy using coal as fuel in their boiler and desalt water in a thermal process called multi-effect distillation. The offer is only valid if both services are purchased. Energy International, also proposes to sell water and electrical energy using diesel oil in either a Caterpillar Diesel engine or a Hitachi Combustion Turbine. A heat recovery steam generator attached to the diesel engine or the turbine would generate steam for a distillation water plant. The offer is only valid if both services are purchased. Both companies would sell WAPA at least one million gallons of water a day. Innoventor Technologies is proposing to sell the authority power by providing a renewable source of energy with their wind turbines.
According to the Rate Reduction, Job Creation and Economic Stimulus Act of 2005, WAPA is required to utilize competitive bidding to select a small power producer. The act was passed by the V.I. Legislature and then signed into law by Gov. Charles W. Turnbull on Sept. 19. The release said that Alberto Bruno-Vega, WAPA executive director, is committed to sticking to the letter of the law in meeting the requirements of the act. Recommendations will be presented to the WAPA's Governing Board by Jan. 20. If any of the proposals qualify with the requirements of the Request for Proposal, terms and conditions will be submitted to the Public Services Commission by Feb. 16.. The PSC has 30 days for review and approval before the agreement can be finalized. It is anticipated that the power purchase agreement, if there are qualified proponents, will be issued by mid March. The required in-service date is March 31, 2009 for a 15-year contract period. WAPA can exercise its option to extend the contract terms for one additional five-year period.
Because of ongoing negotiations with the responders, the authority will not reveal any prices and other information considered confidential or proprietary by the bidders. However, at the conclusion of the negotiation and upon approval by the Authority's Governing Board, prices will be publicly announced, Bruno-Vega said.
The proposals are summarized below:
1. Name of Proposer: Energy International Inc.
Type of Facility/Technology: Diesel Engine or Combustion Turbine
facility using diesel oil*
Capacity Offered:
During Peak Hours Base 20 MW, Alt 1 and Alt 2– 20 MW
During Non-Peak Hours 5-20 MW
Term of Offer: 15 years
Starting Date: 9-30-2008
Ending Date: 15 years later
Renewal option for additional five Years: Yes
*Caterpillar Diesel engine @ 750 rpm, Hitachi Combustion Turbine
2. Name of Proposer: Innoventor Technology LLC.
Type of Facility/Technology: Wind Power Proposal
Capacity Offered:
During Peak Hours 20 MW
During Non-Peak Hours up to 20 MW depending on wind availability
Term of Offer:15 years
Starting Date: 6-30-2008
Ending Date: 15 years later
Renewal option for additional five years: Has to be negotiated
3. Name of Proposer: St. Croix Renaissance, LLLP.
Type of Facility/Technology: Coal Fired Power facility
Capacity Offered:
During Peak Hours 20 MW
During Non-Peak Hours 5-20 MW
Term of Offer: 15-20 years
Starting Date: 18 months from execution of PPA
Ending Date: 15 to 20 years later
Renewal Option for additional five years: Yes

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